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CC - Item 4F - Approval of Adjustment to Employee Benefits for City Manager E M F ROSEMEAD CITY COUNCIL rrr PP' STAFF REPORT \�A..EO, 5g TO: MAYOR AND CITY COUNCIL FROM: BILL R. MANIS, CITY MANAGER DATE: JULY 12, 2016 SUBJECT: APPROVAL OF ADJUSTMENT TO EMPLOYEE BENEFITS FOR CITY MANAGER SUMMARY The City Council will consider the approval of employee benefits adjustment to the City Manager's employment agreement to mirror and reflect the changes that was approved for the Management Service Unit. Staff Recommendation for City Council Action Staff recommends that the City Council approve adjustments in benefits to the City Manager's employment agreement to mirror and reflect the salary and benefits of the Management Service Unit. BACKGROUND On June 28, 2016, the City Council approved and adopted the 2016-2018 Memorandum of Understanding (MOU) with the Rosemead Employees Association covering all General Service employees and annual Resolutions that detail the terms and conditions of employment for other full-time employees and members of the City Council. Resolution 2016-19 was approved and established the salary and benefits for all classifications in the Management Service Unit. In order to avoid any conflict of interest issues associated with the aforementioned Resolution, the adjustment to the City Manager's benefits is presented to you separately for approval. The benefits of the City Manager is tied to the benefits outlined in the Management Service Unit. Therefore, it is necessary that the City Manager's benefits be adjusted to incorporate the benefits of the Management Service Unit. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. FISCAL IMPACT Funds for the annual salary and benefits for the City Manager are included in the City's 2016-2017 Fiscal Year Budget. ITEM NO. 4.F APPROVED FOR CITY COUNCIL AGENDA: __. City Council Meeting July 12,2016 Page 2 of 2 Submitted by: Su Tan Human Resources Manager Attachment: Resolution 2016-19 City Manager Employment Agreement • RESOLUTION NO. 2016-19 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ESTABLISHING ANNUAL SALARY RANGES AND BENEFITS FOR CLASSIFICATIONS IN THE MANAGEMENTSERVICE OF THE CITY OF ROSEMEAD WHEREAS, THE FOLLOWING classifications in the Management Service of the City of Rosemead ("City") are critical to the efficient and effective operations of the City, the City Council recognizes the management nature and responsibilities of the positions; and WHEREAS, employees in these classifications are exempt under the provisions of the Federal Fair Labor Standards Act and serve in an"at-will" employment capacity; NOW THEREFORE, BE IT RESOLVED that effective beginning July 1, 2016, the salary ranges and benefits for the affected classifications will be as follows: SECTION 1: APPLICABILITY Full-time Team Members in the following classifications are covered by this Resolution: Manag`r'em =M it Unit. Assistant City Manager Director of Community Development Director of Finance Director of Parks & Recreation _ Director of Public Works SECTION 2: COMPENSATION SALARY RANGE ADJUSTMENTS BASED ON LABOR MARKET COMPARISONS A basic tenet of the compensation system is that the City will not provide annual across-the- board "cost of living adjustments° (COLA). Rather, the City will annually adjust salary ranges to the "target" of 95% of the average prevailing wage rates for similar occupations in the survey cities, provided that the City has the financial budgeted resources to do so. (Salary range adjustments will not result in automatic salary increases for Team Members unless the Team Member's salary rate is below the bottom of the salary range). This target of 95% of the average is based on the professionally recognized principle that a deviation of plus or minus five percent (+/-5%) constitutes a "competitive position" in the labor market. This is particularly true when total compensation and benefit variations are taken into account. Such determinations on salary range adjustments would be made on a classification-by-classification basis as dictated by labor market conditions and the City's ability to pay. The "target" of 95% of the average prevailing wage rates will be determined by calculating the average mid-point base pay of the survey cities. The selected pay range will then be reduced by five percent (5%) in recognition of the City's rich benefits allowance and the principle that +/- 5% of the average constitutes a 'competitive" position in the labor market. On an annual basis, the non-benchmark to benchmark linkages will be reviewed. If a Team Member's base salary is below the adjusted minimum salary range of his/her classification, his/her salary will be adjusted to the minimum salary range in the range for that classification. SURVEY CITIES In order to determine the prevailing salary rates in the local labor market, the following survey cities have been selected based on a three-fold set of criteria and rationale: 1) contiguous geographic proximity to Rosemead; 2) full contract city status; and/or a sufficient number of comparable positions. The following cities will be surveyed on a periodic basis for comparison purposes: Alhambra La Puente San Dimas Diamond Bar Montebello San Gabriel Duarte Monterey Park Temple City El Monte Pico Rivera SALARY ADJUSTMENTS WITHIN SALARY RANGE BASED ON JOB PERFORMANCE The City's pay-for-performance system allows a Team Member to obtain a percentage merit salary increase consistent with his/her annual performance evaluation. All Team Member salary increases, within the salary range, are based on merit through the annual performance evaluations. Based on the Team Member's performance rating on his/her performance evaluation, a Team Member is eligible for a merit increase. Team Members eligible for a merit increase will be eligible to receive up to a 5% merit increase during the term of this agreement. Team Member salaries may not exceed the maximum salary range within the respective job classification. Current Team Members whose salaries exceed the maximum salary range for the job classification will be y-rated (frozen) and will not receive any merit increases until the salary ranges are adjusted based on the labor market survey comparisons. Effective July 1, 2014, the salary ranges of all positions that are "topped out° or exceed the maximum salary range for the classification will be surveyed on an annual basis. All other classifications will be surveyed bi-annually. All full-time Team Members are part of the Merit Based Compensation System. All Team Member salary increases, within the salary range, are based on merit through the annual performance evaluations. Based on the Team Member's performance overall rating on the performance evaluation, a Team Member is eligible for a merit increase. The following is the performance rating categories and percentage increases that a Team Member may be eligible for based upon funding for FY2016-2018: - Raft g ri Pie e_._ . Unsatisfactory 0% Needs Development 0% _ Meets Expectations 2%-3% Exceed Expectations 4% Substantially Exceeds Expectations 5% The City will provide for merit increases up to 5%for the FY 2016-2018. SECTION 3: PERFORMANCE EVALUATION All Team Members will receive an annual performance evaluation. The City recognizes the importance of conducting timely evaluations. Supervisors, managers, and department directors must submit and conduct performance evaluations in a timely manner on the date the evaluations are due. Every effort must be made by the supervisors, managers, and department directors to submit timely evaluations. However, the City recognizes that when an emergency or an unforeseen circumstance arises, the expectation is to submit the evaluations as soon as practicable. Aside from an emergency or an unforeseen circumstance, in the event that a supervisor will not be able to complete an employee performance evaluation report in a timely manner, the supervisor shall notify the department director and request a time extension for completion of the performance evaluation report. An extension of two (2) weeks will be permitted for the supervisor to complete the evaluation. In addition, the supervisor must inform and notify the respective Team Member if the evaluation will not be completed on time. If a Team Member is out on an extended leave of absence, the performance evaluation will be extended out by the equal amount of time/duration the Team member is out on the leave of absence. An extended leave of absence is defined as thirty (30) days or longer. A probationary Team Member will receive an interim performance evaluation at six months from the date of hire. Interim performance evaluations are not linked to any merit adjustments or increases. SECTION 4: HEALTH INSURANCE PROVIDER The City contracts with California Public Employees' Retirement System (CaIPERS) to serve as the health insurance provider for the City. SECTION 5: CAFETERIA-STYLE HEALTH,WELFARE, &SAVINGS BENEFIT Effective July 1, 2016, the City will provide each full-time Team Member with $1,700 per month for use towards enrolling in any of the City offered health plans, dental plans, and vision plans. Any unused remainder can be put into a deferred compensation plan, taken as a taxable cash disbursement, or used for the purchase of any City sponsored insurance, long-term care, or long-term saving program. Team Members can also choose to waive coverage and take the entire benefit as deferred compensation or cash, but must first show proof of group health insurance coverage through an individual, a spouse or family members coverage through their employer and complete the Voluntary Decline of Health Care Offered Under City of Rosemead Group Plan form. SECTION 6: CHANGES TO THE HEATHCARE LAWS The parties recognize that certain changes to State or Federal laws, programs, taxes or regulation including, but not limited to, the Affordable Care Act (ACA), may impact future medical plan offerings. In the event that such reform measures or resulting changes in the ACA altering the healthcare coverage, options, costs or other elements, the City may reopen Section 4,5, and 30 regarding medical insurance/benefits. SECTION 7: RETIREMENT HEALTH PLAN For all full-time Team Members hired on or before July 1, 2007, who have 20 years or more of service with the City, and who retire from the City, an allocation of up to $1,000/ month will be given to pay for health care benefits for the duration of their retirement. If the health insurance program selected by the Team Member costs more than $1,000/month, the City will only cover the first $1,000/month of the cost of the selected program. Once the Team Member reaches age 65 or becomes eligible for Medicare coverage, the Team Member will transition to Medicare coverage, with the City picking up the remaining cost of health insurance coverage up to a maximum of$1,000/month. For all full-time Team Members hired on or before July 1, 2007, who have 12-19 years of service with the City, and who retire from the City, an allocation of up to $500/month will be given to pay for health care benefits for the duration of their retirement. If the health insurance program selected by the Team Member costs more than $500/month, the City will only cover the first$500/month of the cost of the selected program. The above retirement health contributions will only be in effect for full-time Team Members employed with the City as of July 1, 2007. When Team Member reaches 65 years of age, or becomes eligible for Medicare, said Team Members will transition to Medicare coverage and the City will continue to contribute towards the cost of health care coverage during the duration of the Team Members retirement according to the program as defined in Section 5. Furthermore, it is expressly noted that the retirement health contribution can be used towards health coverage for the Team Member,their spouse, and/or any eligible dependent. Team Members hired after July 1, 2007 will receive retiree health benefits in accordance with public employees' retirement laws and CaIPERS. SECTION 8: RETIREMENT PROGRAM(CALPERS) Team Members will be enrolled in the City's retirement program through CaIPERS. On July 1, 2007, the City began providing the 2.7%@55 benefit formula with one-year final compensation option with no cap. On July 1, 2010, the City implemented a 2-tier system with changes for new hires only. All full- time new hires, hired on or after July 1, 2010, will be subject to the 2%@55 formula with one- year final compensation option. All existing full-time Team Members hired prior to July 1, 2010 will remain at the 2.7 @55 formula. Under the Public Employees' Pension Reform Act of 2013 (PEPRA), effective January 1, 2013, all "new members" will be subject to the 2.0% @ age 62 benefit formula which also requires a three year final compensation (the highest average annual pensionable compensation earned by a member during a period of at least 36 months) with an early retirement age of 52. A"New Member" is defined as: 1. A new hire that is brought into CaIPERS membership for the first time on or after January 1, 2013, and who has no prior membership in any other California public retirement system. 2. A new hire who is brought into CaIPERS membership for the first time on or after January 1, 2013, and who is not eligible for reciprocity with another California public retirement system. 3. A member who established CaIPERS membership prior to January 1, 2013, and who is hired by a different CaIPERS employer after January 1, 2013, after a break in service of greater than six months. Effective January 1, 2013, PEPRA prohibited employers from paying any portion of a "new member's" member contribution rate. All new members must pay 50% of total normal cost as Team Member contribution rate. CaIPERS refers to all members that do not fit within the definition of a new member as "classic members". All existing CaIPERS members as of December 31, 2012, will retain the existing benefit levels for future service with the same employer. By January 1, 2018, all "classic members"will be required to contribute their full share up to 8% of the Team Member contribution of the CaIPERS rate. In order to minimize the impact of this change, the City will again implement a 2% contribution to a Team Member's salary ranges and rates for all classic members for FY 2016/2017. For FY 2017/2018, the following will apply for Tier 1 and Tier 2 Team Members: Tier 1 Members 2.7@,55 2% Tier 2 Members 2(a55 1% Effective July 1, 2014, all classic members enrolled in CaIPERS began paying 2% of salary to CaIPERS towards retiree benefits. In consideration of the members 2% contribution towards CaIPERS, all classic members received a 2% increase in pay on July 1, 2014 and another 2% salary increase on July 1, 2015. Effective July 1, 2016, classic members enrolled in CaIPERS will contribute an additional 2%to CaIPERS for a total of 6%. Effective January 1, 2013, PEPRA prohibited employers from paying any portion of a "new members" member contribution rate. All non-classic California Public Employees' Retirement System (CaIPERS) members must pay 50% of total normal cost as employee contribution rate. SECTION 9: ENHANCED RETIREMENT PROGRAM(PARS) The City offers an enhanced retirement package through Public Agency Retirement Services (PARS) for all Team Members hired prior to July 1, 2010. Covered full-time Team Members who retire from Rosemead after working 20 years for the City will have their pension formula enhanced to 3%@55, with the provision that the maximum pension allowance that Team Member's can accrue through PARS is 90% of their final pay. The PARS retirement pension is limited to 90% of their final pay. Team Members must be at least 55 years of age to qualify for PARS. All Team Members hired on or after July 1, 2010 are ineligible for the Enhanced Retirement Program through PARS in accordance with State law. PARS has been eliminated for all new full-time Team Members. SECTION 10: EMPLOYER FUNDED DEFERRED COMPENSATION PROGRAM For all full-time Team Members, the City set-up and began contributing into a deferred compensation account a percentage of the Team Member salary based on years of service. That funding formula is as follows: ?TVA < rep-ary6Ctohhi`butedunto 401AA. Years'of Service` Deferred Compgnsatldn Program 0-4 1% 5-9 2% 10-14 3% 15-19 4% 20+ 5% In accordance with State law, all Team Members hired on or after July 1, 2010 are ineligible for the employer funded deferred compensation program. The employer funded deferred compensation program has been eliminated for all new full-time Team Members. SECTION 11:VACATION ACCRUAL Full-time Team Members will receive vacation accruals as follows: _ea..o ,. .. ceumulation Years of Service Hours/Pay Period Hours/Year Days/Year Up to year 3.85 100 10 Year 1 —Year 13 5.38 140 14 13+ 6.15 160 16 All full-time Team Members accrue 100 hours of vacation leave during their first year of service. 140 hours are accrued for Team Members with one year of service, up to (but not over) 13 years. For Team Members with over 13 years of service (13+) the accrual rate is 160 hours. Team members cease to accrue vacation hours when, in any pay period, they exceed two times their annual accrual as determined by their anniversary date. All full-time Team Members are entitled to a paid vacation following one year of employment. Team Members may begin taking accrued vacation after six months of employment. Vacation accruals will be determined by the percentage formula of actual hours in a paid status by the City. ,EfS m " ple A Team Member (with 1-13 years of service) who works 80 hours xa ,>s;t on paid status per pay period will accrue 5.38 hours/pay period. .r f •;.rrA A Team Member (with 1-13 years of service) who works 40 hours Exa • Mg., on paid status per pay period will accrue 2.69 hours/pay period s;,' k =- a;y (50% of 5.38 hours/pay period). ..•n. wxce '- A Team Member (with 1-13 years of service) who has a zero leave '''401tet 'E�ar�r re u'' balance and takes an extended leave of absence will not accrue �n e'....::.r.. any hours. SECTION 12: VACATION BUYBACK In order to encourage Team Members to take regular vacations on an annual basis and to partially limit the growth of the City's long-term liability of Team Member accrued vacation hours upon separation of employment, the City has established the following criteria for vacation buyback. Once per calendar year, a full-time Team Member is eligible to have the City buyback up to 40 hours (1 week) of accumulated unused vacation time. On July 1, 2011, the City established two (2) vacation banks as follows: Bank A: Vacation earned/accrued prior to June 30, 2011: Bank B: Vacation earned/accrued after July 1, 2011 (Subject to a 2 year cap). For the purposes of vacation buyback, all Team Members must utilize Bank A prior to utilizing Bank B. However, if there are no hours accrued in Bank A, Team Members may utilize Bank B SECTION 13: CITY-RECOGNIZED HOLIDAYS The following days are recognized and observed as paid holidays: 1. New Year's Day (January 1s') 2. Martin Luther King's Birthday (the third Monday in January) 3. Presidents' Birthday (the third Monday in February) 4. Memorial Day (the last Monday in May) 5. Independence Day (July 4th) 6. Labor Day (the first Monday in September) 7. Veteran's Day (November 11t) B. Thanksgiving Day 9. Christmas Day (December 25th) Non-essential City services and facilities are closed from noon on Christmas Eve to New Year's Day. If a Team Member elects to take the non-holidays off, he/she is required to utilize his/her own time. If a holiday falls on a Friday or Saturday, Team Members will observe that holiday on the preceding Thursday. If the holiday falls on a Sunday, Team Members will observe that holiday on the following Monday. At the discretion of the City Manager and based upon business needs, Team Members may be released at 12:00p.m. on December 24'". SECTION 14: FLOATING HOLIDAYS Team Members receive 20 hours of floating holiday per calendar year. Those hours must be used before the end of the calendar year or they will be forfeited. In case a Team Member terminates employment with the City, he/she will forfeit any unused floating holidays. SECTION 15:ADMINISTRATIVE LEAVE On January 1, Team Members are allocated an allotment of 60 hours per year of administrative leave. On July 1, 2011, the opportunity to sell back administrative leave was eliminated. The use of administrative leave will be limited to no more than one (1) day/shift intervals/increments. Team members will not be able to supplant/combine administrative leave with vacation. The only exception will be from Christmas to New Years Day when non-essential City services and facilities will be closed. Any administrative leave hours that are not utilized by December 31 of a calendar year will be lost. Furthermore, any administrative leave on the books for a terminating Team Member will be paid out at the Team Members hourly rate at a prorated unit of administrative leave available by pay period. Any existing full-time Team Members who were eligible for administrative leave entitlements prior to July 1, 2010 under the terms of the administrative leave clause will continue to be eligible for said entitlements. SECTION 16: PROBATIONARY PERIOD All classifications under the Management Service Unit serve in an "at-will", exempt capacity. "At-will" employment is defined as an employment relationship in which a team member serves at the pleasure of the City Manager and may be dismissed, at any time, without cause and do not have the right of appeal, grievance, or hearing. At-will positions do not have property or vested rights and do not have a probationary period. SECTION 17: FLEXIBLE SCHEDULING Depending on a Team Members area of assignment, an alternate work schedule may be arranged with Department Director approval. This could include the possibility of utilizing a flextime or telecommuting from an offsite location. Any prolonged telecommuting arrangement must be approved by the City Manager. Any alternate workweek must be approved, in writing, by the City Manager. SECTION 18:AMOEBA ORGANIZATION The City is an "amoeba organization". An amoeba is defined as a small single cell organism that changes its shape in response to its environment. Rosemead is a small, fast-responding, organizationally nimble, customer-focused city with the capability to make rapid and coordinated organizational changes to accomplish service delivery objectives. We emphasize a customer service culture within the organization where all full-time Team Members function as "front line service-delivery" providers. Section 19: AMOEBA FLEX WEEKS Based on economic or business necessity, all full-time Team Members are required to work special events with the ability to "flex" their hours to meet the human resources demands of the City's special events which include: • 4th of July Parade/Carnival/Fireworks Show • Fall Fiesta This condition exists in every week in which there is a special event. If an unscheduled event arises, the City Manager has the authority to implement an Amoeba Flex Week. The "flexing" of hours must fall within the same work period of the special event. Supervisors and department directors have the authority to approve/deny or reschedule "flex" hours so that appropriate staff coverage is maintained for operational needs and continued City service. If a holiday falls on a day of the week that would have been a normal workday, the hours worked up to ten (10) will be banked which must be used by December 31st. Those hours must be used before the end of the calendar year or they will be forfeited. In addition, an emergency disaster is exempt from the amoeba flex and does not fall under the definition of special events. SECTION 20: SICK LEAVE A full-time Team Member who is incapacitated from the performance of such Team Members duties by reason of a non-service related illness or injury, pregnancy, legal requirements of public health officials or for reasons specified in the Family and Medical Leave (FMLA) are eligible for sick leave. 1. Amount Earned: All full-time, regular or probationary Team Members will accrue ten (10) hours of sick leave per month. Sick leave will be earned, commencing on the first day of employment as a probationary Team Member, and accrued on a bi-weekly basis. Team Members may accumulate up to a maximum of 120 hours of sick leave with pay per year. Sick leave accruals will be determined by the percentage formula of actual hours in a paid status by the City. �.�, "_ ,,: A Team Member who works 80 hours on paid status per pay ,Example 1•s period will accrue 4.62 hours/pay period. -' A Team Member who works 40 hours on paid status per pay period will accrue 2.31 hour/pay period (50% of 4.62 Example 2i"` hours/pay period). ' s ` A Team Member who has a zero leave balance and takes Example3:'" an extended leave of absence will not accrue any hours. A new Team Member cannot utilize sick leave within the first thirty (30) days of employment. Team Members retiring from the City may have the option to sell back sick leave to purchase service time from CaPPERS. Any other sick leave balance or if the Team Member leaves employment, voluntarily or involuntarily, will be forfeited. 2. Advanced Sick Leave: Sick leave time shall not be taken until such time has been accrued. 3. Utilization of Sick Leave Benefits: The right to utilize benefits under the sick leave provisions herein continues only during the period that the Team Member is employed by the City. All benefits hereunder terminate upon the Team Member leaving City service. A Team Member on military leave is not granted sick leave during the military leave period. Team Members are not eligible to utilize sick leave benefits within the first thirty (30)days of employment. Sick leave is not a leave which a Team Member may use at his/her discretion, but is allowed only in cases of actual sickness or disability which make it impossible or inadvisable for the Team Member to perform normal work assignments/functions. Sick leave may be utilized for dental or medical appointments, medical assessments and/or due to a serious illness in the immediate family. The City Manager/department director may deny or revoke sick leave if the incapacitation for which it is taken is caused or substantially aggravated by compensated outside employment. If a Team Member is absent from work for more than three (3) working days without notifying his/her direct supervisor or department, the Team Member may be dismissed from City service for being absent without official leave. Any abuse of sick leave usage is grounds for disciplinary action up to and including dismissal. 4. Illness During Vacation Leave: Team Members who become ill while on approved vacation leave may request from his/her supervisor to have vacation time converted to sick leave. Verification of illness may be required prior to approval. 5. Notification to Supervisor: Any Team Member needing to be absent because of sickness or other physical disability must notify the appropriate department director or immediate supervisor at least one (1) day prior to such absence if circumstances permit, or within one (1) hour before the start of his/her regular shift when prior notice cannot be given. 6. Sick Leave Authorized Due to Illness in Family: A Team Member is allowed sick leave due to a serious illness in the immediate family. The definition of"family" defined under the Family and Medical Leave Act (FMLA) policy will be utilized. In the event of a serious illness in the immediate family, a certificate of such illness and the need for the Team Member's absence by the acceptable medical authority may be required by the department director. In such case, the Team Member must be able to produce a verifying certification upon request by the immediate supervisor or management. 7. Return to Work Following Illness: The department director may require a Team Member to submit to a medical and/or psychiatric examination by a physician designated by the City before permitting the Team Member to return to work after the Team Member has been on sick leave. If the results of any such examination indicate that the Team Member is unable to perform assigned duties, or if performance of those duties will expose others to infection, the Team Member will be placed on sick leave, or leave without pay after all sick leave has been used, until adequate medical evidence is submitted that the Team Member is competent to perform assigned duties Or will not subject others to the infection. 8. Medical Certificate Requirement: In order to be paid for sick leave, the Team Member must make every good faith effort to notify his immediate supervisor prior to the start of the Team Member's work day. The department director may request, for cause, a certificate issued by a licenses physician or other satisfactory proof of illness before sick leave is granted. The department director may also choose a licensed physician to conduct a physical examination at City expense. Any Team Member who makes application for sick leave may be required by either the department director or City Manager to file a certificate signed by a duly and regularly licensed physician authorized to practice medicine or may be required to submit a personal statement which states the Team Member was incapacitated from performing the duties of the position for each day that sick leave is requested. Authority will also be given to the physician signing the certificate, to disclose to the City Manager or the department director, information relating to sick leave. Sick leave will be granted when the application for sick leave is approved by the department director or the City Manager. 9. Transfer of Sick Leave: New Team Members may bring with them/transfer up to two hundred (200) hours of sick leave from their previous employer provided the previous employer did not otherwise compensate the Team Member for said hours. The new Team Member must provide a letter or documentation from the previous employer verifying accrued but uncompensated hours. A Team Member will not receive any payment for unused accumulated sick leave upon dismissal of employment or retirement (either disability or regular). A Team Member may not use sick leave to extend a retirement (either disability or regular) or dismissal date. This prohibition does not affect a Team Member's right to obtain sick leave credit with CaIPERS. Any other balances or if a Team Member resigns or is dismissed will be forfeited. SECTION 21: BEREAVEMENT LEAVE In the event of the death of a Team Members immediate family (defined as spouse, parent, step-parent, grandparent, sibling, children, grandchildren, mother-in-law, father-in-law, sister-in- law, brother-in-law, registered domestic partner or child of a registered domestic partner), Team Members are entitled to forty (40) hours for bereavement leave per incident. SECTION 22:JURY LEAVE Team Members required to serve on a jury are entitled to their regular compensation for up to eighty (80) hours provided that fees for jury service are deposited to the Finance Department. SECTION 23: BILINGUAL PAY The City offers a bilingual pay program for eligible Team Members who consistently utilize other languages to translate during the normal course of work. To qualify, Team Members must pass the test developed or utilized by the City for the following recognized languages: Spanish, Vietnamese, Cantonese, and Mandarin. A maximum of three (3) positions per language per site may be certified to receive bilingual pay by the City. It will be applicable at all primary sites (City Hall, Rosemead Community Recreation Center (RCRC), Garvey Community Center, Public Safety and Public Works). In the event that more than three (3) Team Members wish to apply for it, management will determine the top three (3) based upon positional need. Once certified, Team Members will receive a bilingual stipend of$75 per month. Any Team Member who is not certified by the City is not required to use a language other than English. However, when a member of the public, requests assistance in a language other than English, our Team Members must make a reasonable effort to accommodate and assist in a polite and professional manner. The City reserves the right to suspend bilingual pay if the Team Member is out on an extended leave of absence of more than 80 consecutive hours and is not physically present at work to provide bilingual services. SECTION 24:SHORT-TERM DISABILITY State Disability Insurance (SDI) is a partial wage replacement insurance in which the City does not participate in. However, for non-work related Team Member disabilities, the City offers Short-Term Disability (STD)/Long-Term Disability (LTD) to full-time Team Members. Workers compensation injuries are excluded from disability leave/insurance offered by the City. The City provides Team Members with a short-term disability plan to protect against cases where a non-work-related illness or injury is sustained which results in an inability to work for a short period of time. Team Members will receive 66.67% or 2/3 of their pre-disability base salary (1 year average of W-2) with a waiting period of 15 calendar days before receiving their benefits and can last up to 11 weeks. Team Members will receive continued payment until the Team Member is medically able to return to work, or has to begin utilizing long term disability, or until the Team Member reaches the age of 65, whichever comes first. The maximum short-term disability benefit amount will be $1,848 per week. Family and Medical Leave Act (FMLA) will run concurrently with disability. The City provides Team Members with a long-term disability plan to protect against cases where a non-work-related illness or injury is sustained which results in an inability to work for a long period of time. In these cases, LTD is received only after STD has expired and the Team Member continues to be medically disabled. Team Members will receive 66.67% or 2/3 of their pre-disability base salary with a 90 day waiting period. Team Member will receive continued payment until the Team Member is medically able to return to work, or until the Team Member reaches the age of 65, whichever comes first. The maximum long-term disability benefit amount will be $8,000 per month. Family and Medical Leave Act (FMLA) runs concurrently with disability. Team Members have the option of receiving a full paycheck by utilizing his/her own leave time to subsidize the 1/3 while on disability. Disability will cover 2/3 or 66.67% of the pre-disability base salary based off of the W-2 (1 year average). However, when on disability, Team Members may not utilize sick leave. Team Members may use vacation, floating holiday, holiday, and/or compensatory time Of applicable). Leave Accrual rate will be based upon the hours utilized. All disability claim forms must be submitted to Human Resources on a timely basis. As a guideline, all claim forms should be submitted within 15 calendar days. All medical certifications or modifications to the medical certification must be submitted to Human Resources on a timely basis. Team Members are required to submit a Fitness for Duty — Return From Leave Certification at least 2 working days prior to the date of return to the department director. Team Members may not return to work without this certification. SECTION 25: LIFE INSURANCE Team Members receive an accidental death and dismemberment and life insurance policy of $100,000. SECTION 26:TUITION REIMBURSEMENT The City will reinstate the tuition reimbursement program for FY 2016-2018 based upon availability of funding. Subject to City Manager approval, Team Members may attend and be reimbursed for part or all of the costs of educational and other training courses (up to $5,000 per fiscal year) which provide a benefit to the City provided there are budgeted funds for such approval by the City Council. The educational/training courses must be job-related leading towards a college or university degree or certificate and Team Members must remain with the City for three (3) years after the successful completion of class/course or must refund the amount received to the City on a pro-rated basis. If a Team Member leaves employment (voluntarily or involuntarily) with the City, prior to the three (3) years after the completion of class/course, the Team Member must refund the amount received based upon the following pro-rated basis: •.. ..:PS4-Rated Schedule YearsofServiddlAfter <_:;� % -k Completion Refund AmountDueto the City Less than one (1)year Full Amount Received Less than two (2) years 2/3 of Amount Received Less than three (3) years 1/3 of Amount Received Team Members with prior approval by the City Manager, may be reimbursed for registration, cost of books, tuition, lab fees and parking for classes or instruction, provided such classes or instruction are related to the Team Member's assigned duties with the City. Reimbursement will be made only after a Team Member has satisfactorily completed the class or workshop with the grade of"C" or better or a "B" or better for graduate level courses and that proof of completion has been submitted and approved by the City Manager. In general, mandatory or required training time during working hours shall be considered part of the job. If the City directs a Team Member to attend a specific,job-related training course during non-working hours, Team Members may utilize flex time. All study time shall be considered completely voluntary. No overtime pay, additional pay or compensatory time shall be given unless advanced written approval is granted by the City Manager. There is no mileage reimbursement for travel to and from educational classes. Required forms must be completed and necessary documentation (receipts and grades) must be provided in order to receive reimbursement. Final and conclusive determinations of the reimbursement amount shall be made by the City Manager/Assistant City Manager after review of the request and recommendations by the department director. SECTION 27:WELLNESS PROGRAM The City provides the Wellness Reimbursement Program at $300 per fiscal year for FY2016- 2018. SECTION 28: COMPUTER PURCHASE PROGRAM The City provides a computer purchase program for all full-time Team Members as outlined in the Administrative Policy No. 30-09 approved by the City Manager. Full-time Team Members are eligible for this program after the completion of the probationary period. Loans are due and payable in full upon termination or separation of employment. SECTION 29: EMPLOYEE ASSISTANCE PROGRAM The City provides Team Members with access to the Employee Assistance Program (EAP). SECTION 30: FLEXIBLE BENEFIT PLAN(SECTION 125) The City offers Team Members a flexible benefit plan which will allow individuals to pay for certain expenses (child care, unreimbursed medical expenses, insurance premiums) with pre- tax dollars. SECTION 31: DIRECT DEPOSIT Team Members are offered an option to authorize the automatic deposit of each paycheck into an individual's checking, savings or credit union account. Payroll checks will not be issued in advance. SECTION 32: AUTO ALLOWANCE Management Team Members may receive up to $500 per month based on business necessity as determined by the City Manager based upon the driving demands of the position. SECTION 33: CITY RIGHTS It is understood and agreed that the City retains all exclusive rights and authority to manage municipal services and the work force performing those services. It is agreed that during the term hereof, the City shall not be required to meet and confer on matters which are solely a function of management, including the right to: • Determine and modify the organization of City government and its constituent work units. • Determine the nature, standards, levels and mode of delivery of services to be offered to the public. • Determine the methods, means, and the number and kinds of personnel by which serves are to be provided. • Determine whether goods or services shall be made or provided by the City, or shall be purchased, or contracted for. • Direct Team Members, including scheduling and assigning work, work hours, and overtime. • Establish Team Member performance standards and to require compliance therewith. • Discharge, suspend, demote, reduce in pay, reprimand, withhold salary increases and benefits, or otherwise discipline Team Members, subject to the requirement of applicable law. • Relieve Team Member from duty because of lack of work or lack of funds or for other legitimate reasons. • Implement rules, regulations, and directives consistent with law and specific provisions of this MOU. • Take all necessary actions to protect the public and carry out its mission in emergencies. • Determine the contents of job classifications. • Contract out and transfer work out of the bargaining unit. • Exercise complete control and discretion over its organization and the technology of performing its work. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Rosemead on the28'h day of June 2016. &v,/, Sandra Arrnenta Mayor ATTEST:j!�/`�l City Clerk APPROVE AS TO FORM: Rachel Richman City Attorney CERTIFICATION STATE OF CALIFORNIA COUNTY OF LOS ANGELES ) SS. CITY OF ROSEMEAD I, Ericka Hemandez, Acting City Clerk of the City of Rosemead, do hereby certify that the foregoing Resolution No. 2016-19, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ESTABLISHING ANNUAL SALARY RANGES AND BENEFITS FOR CLASIFICATIONS IN THE MANAGEMENT SERVICE OF THE CITY OF ROSEMEAD was duly and regulady approved and adopted by the Rosemead City Council on the 28th day of June, 2016, by the following roll call vote to wit: AYES: Alarcon,Armenia, Clark, Low NOES: Ly ABSTAIN None ABSENT: None lir Ericka Hernandez Acting City Clerk, CITY MANAGER EMPLOYMENT AGREEMENT BETWEEN THE CITY OF ROSEMEAD AND BILL R. MANIS This Employment Agreement(the"Agreement") is made and entered into effective April I I,2016 by and between the City of Rosemead, California, a municipal corporation (the "City") and Bill R. Manis, an individual (the "City Manager"). The City and the City Manager are sometimes individually referred to as a"Party" and collectively as "Parties." 1. RECITALS (a) The City requires the services of a City Manager. (b) The City Manager has the necessary education, experience, skills and expertise to serve as the City's City Manager. (c) The City Council of the City desires to employ the City Manager to serve as the City Manager of City. (d) The City Council of the City desires to provide certain benefits, establish certain conditions of employment and to set working conditions of City Manager. (e) The City Manager desires to accept at-will employment as City Manager of City. (1) In consideration of these Recitals and the performance by the Parties of the promises, covenants,and conditions herein contained, the Parties agree as provided in this Agreement. 2. EMPLOYMENT The City hereby employs the City Manager as its City Manager, and the City Manager hereby accepts such employment. (a) Period of Employment (i) Employee shall,following the assumption of the office of City Manager on April 25, 2016, remain as an exclusive employee of the City for an indefinite term subject to the provisions contained in this Agreement and the Rosemead Municipal Code concerning separation from service. Employee agrees not to accept,nor to become employed by any other employer until said termination date,unless said termination date is effected as hereinafter provided. 1 (b) Medical Exam/Fitness For Duty Prior to assuming the office of City Manager on April 25, 2016, the City Manager shall successfully complete a medical/fitness for duty exam,the cost of which will be paid for by the City. 3. COMPENSATION The City agrees to provide the following compensation to the City Manager during the term of the Agreement: (a) Compensation (i) Base Salary (1) The annual salary for the position of City Manager shall initially be $190,000.00. (2) The City Manager shall be paid at the same intervals and in the same manner as regular City employees. (3) Whenever a cost of living adjustment or other nonmerit based pay increase is provided to other City employees, the City Council shall meet to determine whether it is reasonable and appropriate to provide a similar adjustment or increase to City Manager's Base Salary. In the event such a cost of living adjustment or other non- merit based pay increase is provided to other City employees, it shall be the City Manager's responsibility to coordinate with the Mayor to place the consideration of a similar adjustment or increase on the agenda of a regular City Council meeting. (ii) Performance Evaluation The City Council will review and evaluate the performance of the City Manager on an annual basis or more frequently if the Council so desires. Failure of the City Council to provide a performance evaluation shall not limit the City's ability to terminate this Agreement pursuant to the teens set forth herein. Review and evaluation shall be in accordance with such criteria as the parties may jointly agree upon,but which the parties contemplate will include mutually agreed upon performance goals for the City Manager and City Council goals,priorities, activities and programs for the City. 2 (b) Bonding The City shall bear the full cost of any fidelity or other bonds required of the City Manager under any law or ordinance. (c) Benefits To the extent benefits are not specifically addressed in the Agreement,the City Manager shall receive the benefits set forth and attached hereto as Exhibit A, the City of Rosemead Benefits Summary-Management Service Unit,which may be modified from time to time at the discretion of the City Council. In the event there are amendments to the Management Service Group's Benefits made by the City Council, it shall be the City Manager's responsibility to coordinate with the Mayor to place the consideration of a similar adjustment or increase on the agenda of a regular City Council meeting. (d) Car Allowance City Manager is entitled to a$600 monthly car allowance or use of a City vehicle. (e) Vacation and Sick Leave Accrual (i) City Manager shall start employment with a bank of 80 hours of vacation and thereafter accrue vacation at a rate of 160 hours per year or 6.15 hours per pay period. (ii) City Manager shall start employment with a one-time bank of 80 hours of sick leave at the start of employment. (f) Professional Activities and Conferences. The City Council desires the City Manager to be reasonably active in professional organizations that will contribute to the City Manager's professional development and standing and that will contribute to the advancement of the City's interests and standing. To that end the City Council will pay for the membership in and attendance of conferences for the following organizations ICMA, ICSC, CALED, California League of Cities. City Manager may request additional memberships and attendance subject to approval by the City Council. (g) Reimbursement The City shall reimburse the City Manager for reasonable and necessary travel costs, subsistence and other business expenses incurred by the City Manager in the performance of his duties including attendance at conferences. 3 (h) Resignation/Retirement The City Manager may resign at any time and agrees to give the City at least 45 days advance written notice of the effective date of the City Manager's resignation, unless the Parties otherwise agree in writing. (i) Termination & Removal CO The City Manager is an at-will employee and serves at the pleasure of the City Council.Nothing in this agreement shall prevent the City Council from terminating this Agreement and the services of the City Manager at its sole discretion. (ii) Except as is provided in section 4(b)(iii)below, the City Council may remove the City Manager at any time,with or without cause, by a majority vote of its members. Notice of termination shall he provided to the City Manager in writing. (iii) In accordance with section 2.08.050 of the City of Rosemead Municipal Code,as may be modified from time to time, the City Manager shall not be removed from office during or within a period of ninety(90) days next succeeding any general municipal election held in the City at which election a member of the City Council is elected; the purpose of this provision is to allow any newly elected member of the City Council or a reorganized City Council to observe the actions and ability of the City Manager in the performance of the powers and duties of his or her office. (iv) Given the at-will nature of the position of City Manager, an important element of the employment agreement pertains to termination. It is in both the City's interest and that of the City Manager that any separation of the City Manager is done in a businesslike manner. (j) Severance Pay (i) In the event the City Manager is terminated by the City Council without cause during such time that the City Manager is willing and able to perform the City Manager's duties under this Agreement, then in that event the City agrees to continue to compensate the City Manager at his then current rate of pay, as severance pay, for a total of six months, including all benefits and accrued leaves. (ii) In exchange for the Severance Pay, the City Manager hereby expressly waives any right be may have under any applicable law, City policy, or otherwise to appeal or grieve his termination and the terms of the Agreement. (iii) The above severance provisions are intended to comply with the 4 provisions of Government Code section 53260 et. seq. Any severance payment under this Agreement is also subject to the forfeiture or repayment provision of Government Code section 53243 et. seq. (k) Separation for Cause (i) Notwithstanding the provisions of Section 4(c), the City Manager may be terminated for cause. As used in this section, "cause" shall include but not be limited to the following: theft or attempted theft; dishonesty; willful or persistent material breach of City Manager's duties; repeated and protracted unexcused absences from the City Manager's office; engaging in unlawful discrimination or harassment of employees or any third party while on City premises or time; conviction of a felony; and engaging in conduct tending to bring embarrassment or disrepute to the City. (ii) In the event the City terminates the City Manager for cause, except as set forth in section 4(b)(iii) above,the City may terminate this Agreement immediately, and the City Manager shall be entitled to only the compensation accrued up to the date of termination,payments required by Section 4(e)below, and such other termination benefits and payments as may be required by law. In this circumstance,the City Manager shall not be entitled to any severance benefits provided by Section 4(c). (1) Payment for Unused Leave Balance (i) On separation from City employment,the City Manager shall be paid for all unused accrued leave allowances provided in Exhibit A, in accordance with City policy or as required by law. (ii) In the event the City Manager dies while employed by the City under this Agreement, the City Manager's beneficiaries or those entitled to the City Manager's estate shall be entitled to the City Manager's earned salary and any in-lieu payments for accrued benefits, including compensation for the value of all accrued leave balances provided in Exhibit A, in accordance with City policy or as required by law. (iii) Notwithstanding the above, sick leave balance will be forfeited and will not be paid out at the termination(voluntary/involuntarily) of employment. 4. DUTIES AND RESPONSIBILITIES (a) Duties&Authority (i) The City Manager shall be the chief executive officer of the City and be responsible to the City Council for the proper administration of all affairs of the City. The City Manager shall also serve as the chief executive 5 officer of the Rosemead Community Development Commission,the Successor Agency to the Rosemead Community Development Commission,the Rosemead Housing Development Corporation and the Rosemead Housing Authority, unless the boards of such entities shall select other personnel for such duties. City Manager agrees that the salary and benefits provided pursuant to this Agreement represents the full compensation to be paid to City Manager for performance of all duties as the City's City Manager, as well as for performance of all duties required of the chief executive officer of the above identified entities. (ii) The City Manager shall perform all of the duties of the City Manager as set forth in Section 2.08 of the Rosemead Municipal Code and as may be modified from time to time, the California Government Code, and City policies and procedures approved by the City Council, as may be provided from time to time. (b) ICMA Code of Ethics (i) The Parties acknowledge that the City Manager is a member of the International City Management Association (`ICMA"). The Parties mutually desire that the City Manager be subject to and comply with the ICMA Code of Ethics (Exhibit B). (ii) The City Manager commits to comply with the ICMA Code of Ethics. 5. MISCELLANEOUS PROVISIONS (a) Amendments This Agreement may be amended at any time by mutual agreement of the City and the City Manager. Any amendments are to be negotiated, put in writing, and adopted by the City Council. (b) Conflict of Interest (i) The City Manager shall not engage in any business or transaction or shall have a financial or other personal interest or association, direct or indirect, which is in conflict with the proper discharge of official duties or would tend to impair independence ofjudgment or action in the performance of official duties. Personal as distinguished from financial interest includes an interest arising from blood or marriage relationships or close business, personal, or political associations. This section shall not serve to prohibit independent acts or other forms of enterprise during those hours not covered by active City employment,providing such acts do not constitute a conflict of interest as defined herein. 6 (ii) The City Manager shall also be subject to the conflict of interest provisions of the California Government Code and any conflict of interest code applicable to the City Manager's City employment. (iii) The City Manager is responsible for submitting to the City Clerk the appropriate Conflict of Interest Statements at the time of appointment, annually thereafter, and at the time of separation from the position. (c) Proprietary Information "Proprietary Information" is all information and any idea pertaining in any manner to the business of City (or any City affiliate), its employees, clients, consultants, or business associates,which was produced by any employee of City in the course of his or her employment or otherwise produced or acquired by or on behalf of City. Proprietary Information shall include, without limitation, trade secrets, product ideas, inventions, processes, formulae, data, know-how, software and other computer programs, copyrightable material,marketing plans, strategies, sales, financial reports, forecasts, and customer lists. All Proprietary Information not generally known outside of City's organization, and all Proprietary Information so known only through improper means, shall be deemed "Confidential Information." During his employment by City, City Manager shall use Proprietary Information, and shall disclose Confidential Information, only for the benefit of City and as is or may be necessary to perform his job responsibilities under this Agreement. Following termination, City Manager shall not use any Proprietary Information and shall not disclose any Confidential Information, except with the express written consent of City. City Manager's obligations under this Section shall survive the termination of his employment and the expiration of this Agreement. (d) Indemnification Subject to, in accordance with, and to the extent provided by the California Tort Claims Act [Government Code Section 810 et seq.], the City will indemnify, defend, and hold the City Manager hanniess from and against any action, demand, suit,monetary judgment or other legal or administrative proceeding, and any liability, injury, loss or other damages, arising out of any act or omission occurring during City Manager's tenure as City Manager. (e) Severability If any clause, sentence,part, section, or portion of this Agreement is found by a court of competent jurisdiction or arbitrator to be invalid, illegal, void or unenforceable, such clause, sentence,part, section, or portion so found shall be regarded as though it were not part of this Agreement and the remaining parts of this Agreement shall be fully binding and enforceable by the Parties hereto. 7 (f) Laws Affecting'Title In addition to those laws affecting a City Manager, the City Manager shall have the same powers, rights and responsibilities as a Chief Executive Officer, City Administrative Officer, Administrator, and/or City Administrator as those terms arc used in local, state or federal laws. (g) Jurisdiction and Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California, and the Parties agree that venue shall be proper only in Los Angeles County, State of California. (h) Integration This Agreement is intended to be the final, complete, and exclusive statement of the terms of the City Manager's employment by City. This Agreement supersedes all other prior and contemporaneous agreements and statements, whether written or oral, express or implied,pertaining in any manner to the employment of City Manager, and it may not be contradicted by evidence of any prior or contemporaneous statements or agreements. This Agreement represents the entire agreement of the Parties, and no representations have been made or relied upon except as set forth herein. (i) Notice All notices, requests, demands and other communications under this Agreement shall be in writing and shall be effective upon delivery by hand or three (3) business days after deposit in the United States mail,postage prepaid, certified or registered, and addressed to City at the address below, and or at the last known address maintained in the City Manager's personnel file. City Manager agrees to notify City in writing of any change in his address during his employment with City. Notice of change of address shall be effective only when accomplished in accordance with this Section. (1) If to the City: Rosemead City Hall 8838 East Valley Boulevard Rosemead, CA 91770 ATTN: Mayor & City Council (2) If to the City Manager: Bill R. Manis [Address on file at City Hall] 8 (j) Assignment City Manager shall not assign any rights or obligations under this Agreement. City may, upon prior written notice to City Manager, assign its rights and obligations hereunder. (k) Attorney's Fees In any legal action, arbitration, or other proceeding brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs. (I) Interpretation This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any Party. By way of example and not in limitation, this Agreement shall not be construed in favor of the Party receiving a benefit nor against the party responsible for any particular language in this Agreement. Captions are used for reference purposes only and should be ignored in the interpretation of the Agreement. This Agreement may be altered, amended or modified only by an instrument in writing, executed by the City Council and City Manager and by no other means. Each Party waives their future right to claim, contest or assert that this Agreement was modified, cancelled, superseded or changed by any oral agreement, course of conduct,waiver or estoppel. (m) Acknowledgment City Manager acknowledges that he has had the opportunity to consult legal counsel in regard to this Agreement, that he has read and understands this Agreement, that he is fully aware of its legal effect, and that he has entered into it freely and voluntarily and based on his own judgment and not on any representations or promises other than those contained in this Agreement. [signatures on following page] 9 IN WITNESS WHEREOF,the Parties have executed this Agreement, as of the date first indicated above. City City Manager CITY OF ROSEMEAD Bill R. Maths A Municipal Corporation An Individual By: ✓i/.z-tia-L 2 " . -1 I D; o' . % riTh -� Marg.it Clark Bill R. Mavis Mayor ATTES 4 / By: ._«.. Caro Cowley Interim City Clerk __��,�,� APPROVED� A _:■at t, i! • By: i_ .40 Rachel . Richman City Attorney 10 EXHIBIT A CITY OF ROSEMEAD BENEFITS SUMMARY MANAGEMENT GROUP RETIREMENT MEMBERSHIP ADMINISTRATIVE LEAVE ➢ Membership in the California Public Employees' ➢ Allocated an allotment of 80 hours per year Retirement System (CaIPERS). ➢ Any unused hours will be forfeited by December 31 ➢ Participates in Social Security system. of the calendar year > Limited to no more than one (1) day/shift Classic CaIPERS Members: intervals/increments ➢ 2% @ 55 formula ➢ Cannot supplant/combine with vacation leave. Only ➢ Single highest year calculation exception will be from Christmas to New Year's Day ➢ Employee to pay 7% employee's contribution when non-essential City services and facilities will be towards CaIPERS by January 1, 2018. Starting July 1, closed. 2014 the City implemented a 2% payroll deduction for the employee contribution rate over the next 4 HOLIDAYS—(9 Days( years. In consideration of the employee payroll New Year's Day Labor Day deduction, employees will receive a 2% increase in Martin Luther King Jr. Veteran's Day pay each fiscal year until the 7% payroll deduction is presidents Day Thanksgiving Day offset. Memorial Day Christmas Day Non-Classic CaIPERS Members: Independence Day ➢ 2% @62 formula FLOATING HOLIDAYS ➢ Highest average annual pensionable compensation during a period of at least 36 months ➢ 2 days (20 hours) of floating holidays per calendar ➢ Must pay 50% of total normal cost as employee year ➢ Any unused hours will be forfeited by the end of the contribution rate calendar year > 6.25%employee share towards CaIPERS HEALTH,DENTAL&VISION PLANS SICK LEAVE ➢ Benefit allowance of $1,700 per month to be used > Emplo ee—10 hours per month towards employee,spouse, and dependents ➢ Employees may begin taking accrued sick leave after ➢ CaIPERS Medical Plans 30 days of employment ➢ Ameritas Dental Plan ➢ 120 hours paid sick leave per year ➢ VSP Vision Plan ➢ New Employees may transfer up to 200 hours of uncompensated sick leave from previous employer ➢ Any unused balance can be put into a deferred ➢ Any unused hours will be forfeited and will not be compensation plan or taken as a taxable cash paid upon termination (voluntary/involuntary) disbursement ➢ Accumulated unused sick leave hours may be added TELECOMMUNICATIONS as service credit upon retirement ➢ One-time reimbursement amount of no more than VACATION $300 every other calendar year for equipment. ➢ Employees may begin taking accrued vacation after ➢ Receipts must be submitted to be eligible for this 6 months reimbursement. ➢ 100 — 160 hours of annual vacation accrual, ➢ Reimbursement of up to $150 per month for depending on years of service applicable technology costs such as a voice and data plan. Receipts must be submitted to be eligible for - .. Years of Service Huurs Per Year this reimbursement. Up to year 100 1-13 140 13+ 160 their hours to meet the human resources demands of the > Once per calendar year, City may buyback up to 40 City's special events which include: hours(1 week)of accumulated unused vacation time ➢ 4°M1 of July Parade/Carnival/Fireworks Show BEREAVEMENT LEAVE > Fall Fiesta Employees entitled to 4 paid days off per incident in the event of the death of an immediate family member If an unscheduled event arises,the City Manager has the authority to implement an Amoeba Flex Week. The JURY LEAVE "flexing" of hours must fall within the same work period Jury service fees must be provided to the Finance of the special event. Department to be compensated up to 80-hours BILINGUAL PAY MERIT BASED COMPENSATION SYSTEM Eligible and qualifying Employees shall receive a bilingual Employee will receive salary increases of 0%—5%within stipend of $75 per month for one of the following their salary ranges based on merit through his/her recognized languages:Cantonese, Mandarin,Spanish, or annual performance evaluation rating Vietnamese. OverallRating Percentage LIFE&ACCIDENTAL DEATH& DISMEMBERMENT INS. Unsatisfactory 0% $100,000 Needs Development 0% Meets Expectations 2%-3% SHORT TERM DISABILITY(STD) Exceed Expectations 4% _ ➢ 66.67%of base salary with 15-day waiting period Substantially Exceeds 5% Maximum disability benefit amount up to$1,848 per Expectations week until medically able to return to work, or begin utilizing LTD, or until the age of 65 WELLNESS PROGRAM The City provides the Wellness Reimbursement Program LONG TERM DISABILITY(LTD) at$300 per fiscal year 3e 66.67%of base salary with 90-day waiting period S. Maximum disability benefit amount up to$8,000 per EMPLOYEE ASSISTANCE PROGRAM (EAP) month until medically able to return to work or until Magellan Health—health&wellness assistance the age of 65 COMPUTER PURCHASE PROGRAM DEFERRED COMPENSATION-457 PLAN The City will finance $500 — $2,000 at 0% interest per Income may be deferred through the ICMA-RC, 457 eligible Employee after the completion of six month Deferred Compensation Plan which allows you to make probationary period. contributions through a supplemental retirement CREDIT UNION/BANK&DIRECT DEPOSIT savings program F&A Federal Credit Union or Bank of the West with FLEXIBLE BENEFIT PLAN(FSA—SECTION 125) optional participation in direct deposit Allows Employees to pay for child care, adoption, and WORK-LIFE BALANCE unreimbursed medical and insurance premium expenses ➢ 4/10 work schedule with pre-tax dollars ➢ Flexible scheduling upon Department Director and FLEXIBLE SCHEDULING City Managers approval which may include utilizing flextime Depending on assignment, an alternate work schedule may be arranged with Department Director approval. Any prolonged telecommuting arrangement must be approved by the City Manager. AMOEBA FLEX WEEKS Based on economic or business necessity,employees are required to work special events with the ability to "flex" Exhibit B ICM1s ICMA Code of Ethics with Guidelines The ICMA Code of Ethics was adopted by the ICMA membership in 1924, and most recently amended by the membership in April 2015. The.Guidelines for the Code were adopted by the ICMA Executive Board in 1972,and most recently revised in June 2015. The mission of ICMA is to create excellence in local governance by developing and fostering professional local government management worldwide.To further this mission,certain principles,as enforced by the Rules of Procedure,shall govern the conduct of every member of ICMA,who shall: Tenet 1. Be dedicated to the concepts of effective and democratic local government by responsible elected officials and believe that professional general management is essendal to the achievement of this objective. Tenet 2, Affirm the dignity and worth of the services rendered by government and maintain a constructive,creative,and practical attitude toward locat government affairs and a deep sense of social responsibility as a trusted public servant. GUIDELINE Advice to Officials of Other Local Governments. When members advise and respond to inquiries from elected or appointed officials of local governments,they should inform the administrators of those communities. Tenet 3. Be dedicated to the highest ideals of honor and integrity in all public and personal relationships in order that the member may merit the respect and confidence of the elected officials,of other officials and employees,and of the public. GUIDELINES Public Confidence. Members should conduct themselves so as to maintain public confidence in their profession,their local government,and in their performance of the public trust. Impression of Influence. Members should conduct their official and personal affairs in such a manner as to give the clear impression that they cannot he improperly influenced in the performance of their official duties. Appointment Commitment.Members who accept an appointment to a position should not fail to report for that position.This does not preclude the possibility of a member considering several offers or seeking several positions at the sane time,but once a bona fide offer of a position has been accepted,that commitment should be honored.Oral acceptance of an employment offer is considered binding unless the employer makes fundamental changes in terms of employment Credentials An application for employment or for ICMA's Voluntary Credentialing Program should be complete and accurate as to all pertinent details of education,experience,and personal history.Members should recognize that both omissions and inaccuracies must be avoided. COPYRIGHT CD 21115 BY THE INTERNATIONAL CITY/COUNTYMANAGP.MENT ASSOCIATION. ALL RIGHTS RESERVED. 14 Professional Respect, Members seeking a management position should show professional respect for persons formerly holding the position or for others who might he applying for the same position. Professional respect does not preclude honest differences of opinion;it does preclude attacking a person's motives or integrity in order to be appointed to a position, Forting Ethics Violations. When becoming aware of a possible violation of the ICMA Code of Ethics, members are encouraged to report the matter to ICMA.In reporting the matter,members may choose to go on record as the complainant or report the matter on a confidential basis. Confidentiality. Members should not discuss or divulge information with anyone about pending or completed ethics cases,except as specifically authorized by the Rules of Procedure for Enforcement of the Code of Ethics. C k' ge I t M embers should not seek employment for a position having an incumbent administrator who has not resigned or been officially informed that his or her services are to be terminated, Tenet 4. Recognize that the chief function of local government at all times is to serve the best interests of all of the people. GUIDELINE Length of Service. A minimum of two years generally is considered necessary in order to render a professional service to the local government.A short tenure should he the exception rather than a recurring experience. However,under special circumstances,it maybe in the best interests of the local government and the member to separate in a shorter time.Examples of such circumstances would include refusal of the appointing authority to honor commitments concerning conditions of employment, a vote of no confidence in the member,or severe personal problems.It is the responsibility of an applicant for a position to ascertain conditions of employment.Inadequately determining terms of employment prior to arrival does not justify premature termination. Tenet 5. Submitpolicy proposals to elected officials;provide them with facts and advice on matters of policy as a basis for making decisions and setting community goals;and uphold and implement local government policies adopted by elected officials. GUIDELINE Conflicting Roles, Members who serve multiple roles-working as both city attorney and city manager for the same community,for example-should avoid participating in matters that create the appearance of a conflict of They should disclose the potential conflict to the governing body so that other opinions may be solicited. Tenet 6. Recognize that elected representatives of the people are entitled to the credit for the establishment of local government policies;responsibility for policy execution rests with the members. COPYRIGHT M 2015 BY TI IE INTERNATIONAL CITY/COUNTY MANAGEMENT ASSOCIATION. ALL RIGHTS RESERVED. 15 Tenet 7. Refrain from all political activities which undermine public confidence in professional administrators.Refrain from participation in the election of the members of the employing legislative body. GUIDELINES Elections of the Governing Body. Members should maintain a reputation for serving equally and impartially all members of the governing body of the local government they serve,regardless of party.To this end,they should not participate in an election campaign on behalf of or in opposition to candidates for the governing body. Elections of Elected Executives. Members shall not participate in the election campaign of any candidate for mayor or elected county executive. Running for Office Members shall not run for elected office or become involved in political activi ties related to running for elected office,or accept appointment to an elected office.They shall not seek political endorsements,financial contributions or engage in other campaign activities. Elections Members share with their fellow citizens the right and responsibility to vote. However,in order not to impair their effectiveness on behalf of the local governments they serve,they shall not participate in political activities to support the candidacy of individuals running for any city,county, special district,school,state or federal offices. Specifically,they shall not endorse candidates,make financial contributions,sign or circulate petitions,or participate in fund-raising activities for Individuals seeking or holding elected office. Elections relating to the Form of Government Members may assist in preparing and presenting materials that explain the form of government to the public prior to a form of government election. If assistance is required by another community,members may respond. Presentation of issues Members may assist their governing Lindy in the presentation of issues involved in referenda such as bond issues,annexations,and other matters that affect the government entity's operations and/or fiscal capacity. Personal Advocacy of Issues. Members share with their fellow citizens the right and responsibility to voice their opinion on public issues.Members may advocate for issues of personal interest only when doing so does not conflict with the performance of their official duties. Tenet ti. Make it a duty continually to improve the member's professional ability and to develop the competence of associates in the use of management techniques. GUIDELINES Self-Assessment Each member should assess his or her professional skills and abilities on a periodic basis. Professional Development.Each member should commit at]east 40 hours per year to professional development activities that are based on the practices identified by the members of ICMA. Tenet 9,Keep the community informed on local government affairs;encourage communication between the citizens and all local government officers;emphasize friendly and courteous service to the public;and seek to improve the quality and.image of public service. COPYRIGHT O 2015 BY THE INTERNATIONAL CITY/COUNTY MANAGEMENT ASSOCIATION. ALL RIGHTS RESERVED. 16 Tenet 10.Resist any encroachment on professional responsibilities,believing the member should be free to carry out official policies without interference,and handle each problem without discrimination on the basis of principle and justice. GUIDELINE Information Sharing.The member should openly share information with the governing body while diligently carrying out the member's responsibilities as set forth in the charter or enabling legislation. Tenet 11. Handle all matters of personnel on the basis of merit so that fairness and impartiality govern a members decisions,pertaining to appointments,pay adjustments,promotions,and discipline. C IIDEUNrE Equal Opportunity All decisions pertaining to appointments,pay adjustments,promotions,and discipline should prohibit discrimination because of race,color,religion,sex,national origin,sexual orientation,political affiliation,disability,age,or marital status. It should he the members'personal and professional responsibility to actively recruit and hire a diverse staff throughout their organizations. Tenet 12. Public office is a public trust. A member shall not leverage his or her position for personal gain or benefit. GUI UE LINES Gifts. Members shall not directly or indirectly solicit,accept or receive any gift if it could reasonably be perceived or inferred that the gift was intended to influence them in the performance of their official duties; or if the gift was intended to serve as a reward for any official action on their part. The term"Gift"includes but is not limited to services,travel,meals,gift cards,tickets,or other entertainment or hospitality.Gifts of money or loans from persons other than the local government jurisdiction pursuant to normal employment practices are not acceptable. Members should not accept any gift that could undermine public confidence. De minimus gifts may be accepted in circumstances that support the execution of the member's official duties or serve a legitimate public purpose. In those cases,the member should determine a modest maximum dollar value based on guidance from the governing body or any applicable state or local law. The guideline is not intended to apply to normal social practices,not associated with the member's official duties,where gifts are exchanged among friends,associates and relatives. Investments in Conflict with Official Duties, Members should refrain from any investment activity which would compromise the impartial and objective performance of their duties. Members should not invest or hold any investment,directly or indirectly,in any financial business,commercial,or other private transaction that creates a conflict of interest,in fact or appearance,with their official duties, In the case of real estate,the use of confidential information and knowledge to further a member's persona]interest is not permitted.Purchases and sales which might be interpreted as speculation for quick profit should be avoided(see the guideline on"Confidential Information").Because personal investments may appear to influence official actions and decisions,or create the appearance of impropriety,members should disclose or dispose of such investments prior to accepting a position in a COPYRIGHT©2015 BY THE INTERNATIONAL CITY/COUNTY MANAGEMENT ASSOCIATION. ALL RIGHTS RESERVED. 17 local government. Should the conflict of interest arise during employment the member should make full disclosure and/or recuse themselves prior to any official action by the governing body that may affect such investments. This guideline is not intended to prohibit a member from having or acquiring an interest in,or deriving a benefit from any investment when the interest or benefit is due to ownership by the member or the member's family ofa de minimus percentage ofa corporation traded on a recognized stock exchange even though the corporation or its subsidiaries may do business with the local government. Personal Relationships. Member should disclose any personal relationship to the governing body in any instance where there could be the appearance ofa conflict of interest.For example,if the manager's spouse works for a developer doing business with the local government,that fact should be disclosed. Confidential Information Members shall not disclose to others,or use to advance their personal interest, intellectual property,confidential information,or information that is not yet public knowledge,that has been acquired by them in the course of their official duties. Information that maybe in the public domain or accessible by means of an open records request,is not confidential. Private Employment. Members should not engage in,solicit,negotiate for,or promise to acceptprivate employment,nor should they render services for private interests or conduct a private business when such employment,service,or business creates a conflict with or impairs the proper discharge of their official duties. Teaching,lecturing,writing,or consulting are typical activities that may not involve conflict of interest,or impair the proper discharge of their official duties.Prior notification of the appointing authority is appropriate in all cases of outside employment. Representation. Members should not represent any outside interest before any agency,whether public or private,except with the authorization of or at the direction of the appointing authority they serve. Endorsements. Members.should notendorse commercial products or services by agreeing to use their photograph,endorsement,or quotation in paid or other commercial advertisements,marketing materials, social media,or other documents,Whether the member is compensated or not for the member's support. Members may,however,provide verbal professional references as part of the due diligence phase of competitive process or in response to a direct inquiry. Members may agree to endorse the following provided they do not receive any compensation:(1)books or other publications;(2)professional development or educational services provided by nonprofit membership organizations or recognized educational institutions; (3)products and/or services in which the local government has a direct economic interest. Members'observations,opinions,and analyses of commercial products used or tested by their local governments are appropriate and useful to the profession when included as part of professional articles and reports. COPYRIGHT Cry 2015 BY THE INTERNATIONAL CITY/COUNTY MANAGEMENT ASSOCIATION. ALL RIGHTS RESERVED. 18